Johnson & Johnson (J&J) reported fourth-quarter 2024 results that beat analyst estimates, though earnings dipped slightly year-over-year. The pharmaceutical and medical device giant posted better-than-expected earnings per share, initially sending shares up as much as 1.9% in premarket trading. However, those gains have since been erased, with the stock now down 0.5% pre-market.
Key Fourth-Quarter Results:
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Open real account TRY DEMO Download mobile app Download mobile app- Adjusted EPS: $2.04 vs. $2.29 year-over-year (Bloomberg consensus: $1.99)
- Revenue: $22.52 billion, up 5.3% year-over-year (estimate: $22.43 billion)
- MedTech Sales: $8.19 billion, up 6.7% year-over-year (estimate: $8.23 billion)
Drug Sales Performance:
- Imbruvica: $731 million, down 7.2% year-over-year (estimate: $711.6 million)
- Invega Sustenna: $1.06 billion, up 5.1% year-over-year (estimate: $1.03 billion)
- Darzalex: $3.08 billion, up 21% year-over-year (estimate: $3.02 billion)
- Erleada: $784 million (estimate: $792.1 million)
- Tremfya: $949 million, up 4.3% year-over-year (estimate: $1.05 billion)
- Remicade: $359 million, down 16% year-over-year (estimate: $371.8 million)
- Stelara: $2.35 billion, down 15% year-over-year (estimate: $2.4 billion)
- Zytiga: $135 million, down 33% year-over-year (estimate: $134.4 million)
- Xarelto: $676 million, up 29% year-over-year (estimate: $512.4 million)
- Simponi: $583 million, up 16% year-over-year (estimate: $502.7 million)
2025 Outlook:
- Revenue: $89.2 billion to $90 billion
- Adjusted Operating EPS: $10.75 to $10.95
- Adjusted EPS: $10.50 to $10.70
Earnings Commentary:
The company projects 2025 operational sales growth of 2.5% to 3.5%. These projections exclude the impact of the Intra-Cellular Therapies Inc. (ITCI) acquisition. The acquisition could add as much as 35 cents per share to adjusted EPS for the year, depending on the closing date of the transaction, which is anticipated in the second quarter. The nearly $15 billion deal is expected to bolster J&J’s presence in neurology.
According to Bloomberg reporting, strong sales of cancer drugs like Darzalex offset a decline in demand for psoriasis treatments, including Stelara, which faces generic competition.
The company is also awaiting court approval of an $8 billion settlement that would resolve thousands of talc-related lawsuits.
Despite challenges related to drug price negotiations in the U.S., J&J executives have expressed optimism about the pharmaceutical industry's future, particularly with the potential for policies supportive of domestic manufacturers.
U.S. pharmaceutical stocks (excluding Eli Lilly) have been under pressure for many months. JNJ is down approximately 7% year-to-date, with a near-continuous decline since the beginning of September. Since January 10th, JNJ shares have rebounded by approximately 10%, according to xStation5.
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